Our systems and processes are capable of managing our existing client base. July 2008 is our first month of operations in Margin Funding business.
Business Update
Table 1: Broking Branch Expansion Owned Branch Owned Branch We have continued to carry out our Addition (Current) Addition (Projected) branch expansion and we have Quarter ‐ I .
BRANCH EXPANSION
MARGIN‐FUNDING
After the successful completion of the pilot launch. FY09 FY09 already opened 12 new branches in 1 1 Q1 FY09. We are also putting systems to make sure that every sales unit turns profitable within the stipulated gestation period. contributing to a total loan book of INR 10. Currently. Insurance and Personal Loans. we would invite a consultancy firm to perform the review and compliance of the systems and processes. As of 30 June 2008 the total Regional Offices 3 16 number of Broking branches stands at Big Offices 5 33 140 and 15 for Third Party Medium Offices 3 22 Distribution (please see the section Small Offices 12 72 on Third Party Distribution). close to 172 customers have signed up till date and about 40 customers have become active.9 million as at 31 August 2008.
Angel Broking |Review Document | Quarter‐I. we have taken a decision to build costs in order to prepare ourselves for this quantum leap. However. Looking at the volume of business and growth potential. Mutual Funds. It needs to be borne in mind that this is a highly people‐intensive business and we need to equip ourselves to take advantage of an improved business in future. since costs are being built faster than the revenues. we also intend to expand our manpower resource base. We are working out a detailed business plan to make sure that we achieve our future targets of AUM in Mutual funds. premium sales in insurance and loan distribution. Table 1 Total shows the number of new broking branches opened in Q1 FY09 and the corresponding projection for the fiscal year.e. though every sales unit would be closely monitored and multiplied. FY‐2009 3
. there would be a lag between the two. in line with our growth plans we strive to further upgrade our systems and once we are done with the process. Hitungshu Debnath. We aspire to achieve a significant market share in the next couple of years and hence. Therefore.
THIRD PARTY DISTRIBUTION (TPD)
The Third Party Distribution team has been strengthened with the induction of respective divisional heads (reporting to Mr. Executive Director ‐ TPD) for separate verticals i. we have rolled out margin funding pan‐India.

149 0.190
FY09(Projected) 344.861 130. The TPD team has been ramped up with 1177 employees as on 30 June 2008 from 275 as on 30 April 2008.406 1.525 13.359 108.135 0. As per the current projections. Dedicated branches are being rolled out by this vertical and so far 15 branches have been identified and are at various stages of implementation.546 583.238 17.812 16.468 10.77 millions.24 0. Table 3 represents the gross revenue for TPD and its split across all three verticals. Table 2 will provide you with further details on TPD team size. 23 more branches have been planned. we should end this fiscal year with gross revenue of INR 583.889 12.290 0. FY‐2009 4
.080 15.
Insurance Mutual Funds Personal Loans Total
Table 2: TPD Team Size April 2008 May 2008
224 19 449 23
June 2008
897 43
32 275
57 529
237 1177
Particulars Life Insurance Mutual Funds Personal Loans Total
Table 3: TPD Gross Revenue (INR Million) April 2008 May 2008 June 2008 July 2008 9.255 1.57 11.467 0.075 0. Going forward.768
Angel Broking |Review Document | Quarter‐I.

Angel Broking |Review Document | Quarter‐I.5 1. It is relatively on the lower side for the following reasons: a.5 4.
PRODUCTIVITY
Overall productivity of Angel is around 1. 2007 is at 0.6 4.2 Blended New 4.3 2 1.35 0. is obviously masking the productivity of the older branches.30 0.8 1.29 0.02 million) and setting up of new branches (INR 33.08 million).19 0. the productivity of the new branches being lower.50x. Current market conditions with low trading volumes Graph 1 shows the productivity trend for last productivities of new branches and blended productivity of all (new and old) branches. The “Productivity” Axis indicates the productivity of the new branches as the time progresses (in terms of branch month).55 4. PricewaterhouseCoopers are working on auditing the financial statements for FY08 and we expect to get them by mid‐September. Graph 1: Productivity of Old and New Branches
Productivity Apr 07 to Jun 08 (Old & New Branches)
6 5. The “Branch Age” axis indicates the age of newly commissioned branch as on June 2008 end.5 0.55x b.00 3.2 3.5 0.4
As is evident from the graph above.1 2. Graph 2 shows the aging‐wise productivity of the new branches.7 2. Productivity of new branches opened after September 1.28 1.1 4. The loss is mainly due to ramping up of Third Party Distribution division (INR 10.50 0. FY‐2009 5
.92 million in the first quarter of FY09.6 5 4 3 2 1 0 0.21 0.
Financial Performance Review
We observed a loss of INR 1.

and Cash Management. Besides the above. Prior to Deloitte. as was mentioned in the earlier update. Tech from IIT‐Delhi and a PhD (Economics). Mudit’s primary responsibility would be to look at the existing business intelligence framework. strategy and implementation) for Deloitte Consulting India. Retail Banking. strategy and advisory. Mudit Kulshreshtha (Executive Director – Business Intelligence and Analytics) Mudit is an M. he would oversee the entire operations for all business verticals and would also be involved in reviewing the exiting processes and systems along with experts and consultants and look at means to make them more scalable and current. with 13 years of work experience in various fields of management consulting. Strategic Planning. Mudit is one of the founders of the S&O practice (for its vision.
Senior – Level Management Recruitment
a) Mr. b) Dr. His last stint was with Deloitte Consulting where he was heading the analytics practice and had the mandate to establish the S&O service lines intensive in analytics such as Customer and Market strategy and Supply Chain management. He is a BE and an MBA by qualification. Wholesale Banking. Consumer Business( specially Travel) and an IT company. Santanu Syam (Executive Director – Operations) Santanu has over 17 years of banking experience and has been involved in Business Process Re‐engineering. FY‐2009 7
. Mudit established and lead the Advance Analytics practice for NYSE listed WNS Global Services and leads a team of 60 doing both program management as well as running operations for four major accounts of Fortune 500 companies across 3 industries –Financial Services. Core Banking Implementation. all the fresh management graduates have now been associated with their respective mentors and are currently going through a thorough on‐the‐ job training. look at means to optimize the existing resources across the organization in order to enhance the productivity and profitability of the group. Project Management. Operational Risk Management. At Angel. At Angel.
Angel Broking |Review Document | Quarter‐I.

size is the most critical of all parameters. Therefore.Miscellaneous
The retail financial services space is going through a rough weather now. We wish to evaluate opportunities in this area. In this sector. we wish to take a quantum leap and achieve leadership position sooner. we at Angel are keen to make the best of these times to try and consolidate and enhance our market share in all product verticals or at least. we should be there to wrest full advantage of the situation. Therefore. we realize that size cannot be achieved overnight. With a significant enhancement of management bandwidth.
Angel Broking |Review Document | Quarter‐I. we firmly believe that this is within our reach. most of those being beyond our control. Now. People are approaching this sector with a lot of circumspect for a host of reasons. inorganic growth will now assume significant importance in our future growth strategy. There is no denying the fact that the sentiments have to improve. There is an aura of negativity all around. Nobody doubts the economic growth of this country. some of them internal to the country and some external. This is where we see an opportunity. Though our organic growth by way of client acquisition has remained robust even in these conditions (we are adding close to 15000 customers a month without considering the additions in the distribution vertical) and gradually upping our market share quite noticeably. set up ourselves for that so that when the time indeed arrives and sentiments improve. FY‐2009 8
.